Dental Discount Plan - Business Plan

Okay so a friend and I are going to start a Dental Discount Plan business.

The advantage to the dentist is that he gets free advertising and customers he may not have gotten if he was not part of the plan. I know several dentists that participate in these dental discount plans.

I have come up with a list of prices I would like to use but was wondering if any of you out there have ever used such plan, or have any suggestions about running a business like this? Startup info mainly...

Thanks,

[Dien Rice]

Originally Posted by Next2

Okay so a friend and I are going to start a Dental Discount Plan business.

The advantage to the dentist is that he gets free advertising and customers he may not have gotten if he was not part of the plan. I know several dentists that participate in these dental discount plans.

I have come up with a list of prices I would like to use but was wondering if any of you out there have ever used such plan, or have any suggestions about running a business like this? Startup info mainly...

May I ask first how it works?

Do people pay membership to join the program? And in return they get a discount when they go see a dentist who's participating in the program?

The dentist benefits by getting new customers. The customer benefits by getting a discount from participating dentists. And the entrepreneur benefits since they make a profit from the membership fees.

The entrepreneur has to both sign up dentists willing to participate (and give a discount to members), as well as sell the program to paying customers.

Is that how it works?

Thanks,

Dien

That's sounds about right Dien.

I signed up for one through http://www.dentalplans.com about 2 years ago when choosing a new dentist and the savings was amazing. Cost like $100 for the plan and saved me over 7k according to the prices I was given.

Of course I think their standard prices are heavily inflated to profit from those with insurance to cover the costs - but those without ins or a savings plan like this pay through the nose and that rubs me the wrong way.

Good luck starting a new plan here. I wouldn't say it's impossible, but it'll be tough with other bigger players who have already been in business for years. You'll need a great reason WHY dentists should signup with you.

Personally - I think it would be easier for you to develop and promote a local lead generation website and then "sell" these leads to the dentist. On average a new client that stays with a dentist for a few years has to be worth thousands - so you could probably get at least a few hundred for each new client you can supply.

HTH,

Steve